MAPS Individual Policy Valuation Model

The MAPS Individual Policy Valuation Model, developed by Milliman, provides expected premium, death benefit and expense cash flows based on the investor's mortality or life expectancy assumptions. The system will calculate the actuarial present value given these cash flows at the investor's desired rate of return.

Evaluate the following types of insurance:

• Whole life
• Term insurance
• Second-to-die (Survivorship)
• Universal life - the model will solve for the lowest cost required to keep the policy in force based on the determined cost of insurance (COI) and the investor's funding requirements.

Key model features include:

• Simultaneous valuations for multiple life expectancies
• Solving for internal rate of return using a given target price
• Flexibility with mortality assumptions - users may apply the assumptions of the 2001 VBT or 2008 VBT, with adjustments that vary by gender, age and smoking class.
• Recognition of policy expenses (including sales costs)
• Monthly income statements to allow for managing premium payments
• Handling unique policy provisions such as minimum premium requirements, option B face amounts, and return of premium provisions
• Tracking by carrier, diagnosis, case status and other characteristics
• Specifying projected premium modes and patterns, such as level monthly for a specified period
• Ability to save multiple sets of valuation assumptions for each case
• Dual discount rates for the purchase price and on-going premium payments